Woodside (WPL)

Woodside
reported a 17 per cent decline in underlying 2013 earnings, to $US1.7 billion ($1.9 billion), near expectations and Morningstar increased its 2014 earnings forecast 15 per cent to $2.89 a share after lowering its long term AUD/USD exchange rate forecast to 0.90 from parity.

It put its 2015 earnings forecast at $2.73 a share.

“At $38, Woodside shares have rallied over the last six months from July $30 lows. But they remain at a meaningful 25 per cent discount to our new fair value estimate, the market balancing up the handy 80 per cent payout ratio against growth uncertainty, heightened by Leviathan. We think Western Australian growth potential will ultimately be realised," Morningstar said.